Europe open: Stocks little changed; Actelion surges on Sanofi deal talk

European stocks were flat in quiet trade after Thursday’s session saw investors react to rate announcements from the Federal Reserve and the Bank of England.

At 0855 GMT, the benchmark Stoxx Europe 600 index and Germany’s DAX were up 0.1%, while France’s CA 40 was down 0.1%. Meanwhile, oil prices nudged higher, with West Texas Intermediate and Brent crude up 0.2% to $51.02 and $54.16 a barrel, respectively.

Markus Huber, a trader at City of London Markets, said: “European shares are trading little changed this morning managing to hold on to their gains from yesterday on the back of mixed markets overnight in Asia. Stocks are continuing to get a boost from a weaker Euro and the notion that the US, the world largest economy will experience an uptick in growth once president elect Trump has started implementing his new policies.

“Whilst the economic and corporate calendar looks typically sparse for this time of the year main focus will be on triple witching today where stock index futures, stock index options and stock options expire. In light of the recent impressive run-up in share prices triple witching might just lead to a bit of profit taking later today however overall sentiment remains positive for now.”

In corporate news, Swiss biotech group Actelion rallied following a report that France’s Sanofi is in advanced talks to acquire the company, in a deal that could be announced as early as next week.

Rentokil Initial surged after the FTSE 250 pest control company said it has agreed to merge its Workwear and Hygiene divisions with Germany's Haniel & Cie Holding Co.

On the downside, Micro Focus International slumped after UBS cut its rating on the stock to ‘neutral’ from ‘buy’ citing near-term risks.

On the macroeconomic calendar, eurozone trade balance and inflation data are at 1000 GMT.